The U.S. self-regulatory organization, the Financial Industry Regulatory Authority (FINRA), has created a new committee to give greater attention to investor issues, and the investor view of its work.
FINRA says that its newly created Investor Issues Committee will launch in January 2014 to advise senior staff at the SRO on proposed rulemaking, policy initiatives and other issues that significantly impact both retail and institutional investors. It will also help inform the regulator’s economic analysis from the perspective of investors.
At the same time, the regulator also announced the appointment of two new public governors — Dr. Brigitte Madrian a professor of public policy and corporate management at the Harvard Kennedy School; and Dr. Luis Viceira, a professor at Harvard Business School. They will join the board in January.
FINRA says that Dr. Madrian’s current research focuses on behavioral economics and household finance, with a particular focus on household saving and investment behavior. And, Dr. Viceira studies asset allocation strategies for long-term investors, both individuals and institutions, and capital markets, with an emphasis on the Treasury bond market and the term structure of interest rates, and household finance.
“Brigitte’s expertise in behavioral economics and Luis’ focus on asset allocation and capital markets will bring valuable perspectives to FINRA’s board as we pursue our mission to protect investors and ensure market integrity,” said Richard Ketchum, FINRA’s chairman and CEO. “I am eager to work with our new Investor Issues Committee, which will help FINRA better understand the needs and protect the interests of the investing public.”
FINRA is overseen by a 24-person board, comprised of 13 public governors, 10 industry governors and FINRA’s CEO. Governors are appointed or elected to three-year terms and can only serve two consecutive terms.